Mattamy Homes to purchase Monarch Corporation
By Mattamy Homes
By Mattamy Homes
Dec. 17, 2014 – Mattamy Homes Ltd. has entered into an agreement to purchase Monarch Corporation, the Canadian division of U.S. homebuilder Taylor Morrison Home Corporation.
Dec. 17, 2014 – Mattamy Homes Ltd. has entered into an agreement to
purchase Monarch Corporation, the Canadian division of U.S. homebuilder
Taylor Morrison Home Corporation.
The net cash purchase price will be determined based on the December 31, 2014 Monarch balance sheet and certain agreed-upon adjustments. The purchase price is currently estimated to be approximately CAD$330 million, net of cash distributed to the vendor prior to close. The deal is expected to formally close in the first quarter of 2015 and is subject to customary closing conditions, including approval by the Canadian Competition Bureau.
"Monarch is a leading builder in Ontario, with an exceptional reputation and portfolio of assets," says Peter Gilgan, Founder & CEO of Mattamy. "The addition of the business to Mattamy Homes aligns well with our growth strategy, and we look forward to working with the talented Monarch team as we enhance our already significant footprint in Ontarioand enter into the high-rise market."
Following closing of the transaction, Mattamy and Monarch will spend the following months evaluating how and to what extent the two organizations will be integrated. The intent is to have made the necessary operational decisions by the beginning of Mattamy's 2016 fiscal year (June 1, 2015).
"This is an exciting time for Mattamy as well as Brad Carr, our Canadian President, and me" says Brian Johnston, Chief Operating Officer of Mattamy Homes. "We both spent our formative years at Monarch and expect the deal to provide valuable synergies to Mattamy. I would highlight that this acquisition, in one stroke, puts us in the high-rise business in a significant way. High-rise represents more than 50% of new home sales in the Greater Toronto Area and so is a major positive to this transaction."
Torys LLP acted as legal advisors for Mattamy in connection with the transaction.